CAC40: Paris stock market tries to recover despite tensions in North Korea :

The CAC40 refuses to sink under tension in North Korea and rebounds after a difficult start to the week.

Indeed, while North Korea had made new announcements on nuclear tests this weekend, stock markets began the week down.

However, bearish pressures appeared to be already less important than before, while the CAC40 remained above the 5080 after the European opening.

A rebound then began to take shape, which shows some resilience of the stock index to the new threats of Kim Jong-un.

While economic fundamentals are increasingly strong and are supporting stock market indices in Europe, we are not immune to a further bearish episode on an escalation of geopolitical tensions.

In terms of technical analysis, the CAC40 remains close to the rising edge of its channel, but a breakdown is still necessary to give a short / medium term buying signal.

The current area to be monitored is around 5140/50, with the upper bound of the bearish channel, the horizontal threshold and the moving average of 200 in H4.

A break above could then pave the way for a more significant uptrend with greater upside potential.

The first resistances would be at 5200, 5230 and 5260, but we could go up much higher if we have a lull of geopolitical risks.

On the downside, the first supports come at 5100 and 5080. Below, we could find in the first 5050, then possibly the latest down to around 5000.

The CAC40 currently operates at 5121 on the Paris stock exchange.

0